Gen X, millennials lag in retirement confidence amid knowledge gap

Many Americans are entering their prime earning years without feeling confident about their retirement plans, according to new research from AmeriLife, which found that limited financial knowledge and access to professional guidance continue to weigh on retirement readiness.

The survey of 2,000 U.S. adults ages 30 to 61 found that just 47% believe they are on track to meet their retirement goals. Twenty-four percent of respondents strongly agreed that a lack of financial knowledge is getting in the way of their ability to invest for their future, and a nearly equal 23% see that as somewhat true. Meanwhile, only 47% believe they have adequate access to qualified financial professionals who can help them achieve their goals.

“Americans today are navigating an increasingly complex retirement landscape, and many are doing so without the level of clarity or confidence they need,” said Todd Buchanan, president of AmeriLife Wealth. “This research shows that the challenge isn’t just about saving, but also about understanding how to turn those savings into a sound retirement strategy.”

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The confidence gap is particularly pronounced among Generation X investors. Just 39% of Gen X respondents said they feel on track for retirement, compared with 55% of millennials. Women also reported lower confidence than men, with 41% saying they are on track versus 52% of men.

The findings suggest that earning a higher income alone does not eliminate retirement planning challenges. Among respondents earning at least $50,000 annually, nearly two-thirds said they are taking the right financial steps toward retirement, leaving more than one-third who said they were unsure or do not believe they are on track. Nearly half also said limited financial knowledge prevents them from investing to reach their goals.

Retirement income planning also remains an area of confusion. Nearly half of respondents said they are unsure how annuities fit into an investment portfolio, while 55% said competing viewpoints about the products have left them confused. Only 17% gave themselves an “A” grade for understanding annuities.  

Despite that uncertainty, respondents expressed interest in products that could provide guaranteed income. More than half said they would be likely to include an annuity in their retirement plan if it offered guaranteed lifetime income while protecting principle from market losses. Among the 21% of respondents who already own an annuity, 88% said they wished they had learned about the product’s benefits earlier.

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The results underscore that closing the financial literacy gap could play a key role in boosting retirement confidence, particularly as workers face more responsibility for managing their own retirement income.